The Financial Conduct Authority (FCA) has banned Demetrios Hadjigeorgiou from senior management roles in financial services and imposed a £56,400 fine for his failures as chief executive of SVS Securities Plc, a discretionary fund manager. The regulator found that Hadjigeorgiou prioritized firm revenue over customer protection while managing pension savings and other investments during his tenure from May 2018 to August 2019.
- Fine imposed: £56,400
- Position held: CEO of SVS Securities Plc (May 1, 2018 to August 7, 2019)
- Customer losses from bond reduction: £359,800
- Regulatory breach: Statement of Principle 6 (failure to exercise due skill, care and diligence)
The FCA identified multiple breaches of customer protection obligations under Hadjigeorgiou’s leadership. The firm invested customer money, including pension savings, in high-risk products while receiving substantial payments from the issuing companies, a conflict of interest that was not properly managed. Additionally, Hadjigeorgiou failed to challenge a decision that reduced the value of customers’ bond investments by 10% upon sale, generating £359,800 in revenue for SVS at customers’ expense. Customers were not adequately informed of these reductions, resulting in direct losses to their retirement savings.
Building up a pension for retirement is one of the most important investments you can make. Mr Hadjigeorgiou put people’s savings at risk and his actions have left people worse off in retirement. Where senior leaders fail to put customer interests first, we will act.
– Therese Chambers, joint executive director of enforcement and market oversight, FCA
Hadjigeorgiou settled his case with the FCA and withdrew his referral to the Upper Tribunal, leading to the ban and financial penalty. The prohibition order prevents him from undertaking senior management functions in regulated financial services. SVS Securities Plc entered special administration on August 5, 2019, and was subsequently dissolved on August 10, 2023.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at FCA. Source: LinkedIn
